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Luden [163]
3 years ago
15

Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles fr

om home. Which of the following is the most likely explanation for her behavior?
a.The opportunity cost of her time is very low.
b.She doesn't take travel time into consideration.
c.She doesn't like to cook or doesn't know how.
d.The prices at the more expensive restaurant understate the opportunity cost of eating there.
e.The higher monetary cost of the more expensive restaurant is offset by the higher opportunity cost of the lower-priced restaurant
Business
1 answer:
kiruha [24]3 years ago
4 0

Answer:

Option (E) is correct.

Explanation:

The opportunity cost refers to the benefits that are sacrificed by choosing some other alternative.

In our case, there are two restaurants as follows:

One is 2 miles away from home with higher prices

Second one is 15 miles away from home with lower prices

But Melissa chooses the first one by comparing the opportunity cost associated with each option relative to the other option.

This is because of the higher opportunity cost associated with second restaurant offsets the higher monetary cost of the first restaurant.

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Suppose that you invest $100 today in a risk-free investment and let the 6 percent annual interest rate compound. What will be t
Kipish [7]

Solution :

It is given that :

Amount of investment or the principle amount , P = $ 100

Time of investment , t = 6 years

Rate of interest compounded annually r = 6 %

Therefore the future amount of this investment in a 6 year time is given by,

$FV=P(1+\frac{r}{100})^t

$FV=100(1+\frac{6}{100})^6

$FV=100(1+0.06)^6

$FV= 100 (1.4185)$

$FV=141$

Therefore, after 6 years the investment of $ 100 will give an amount of $ 141.

3 0
3 years ago
Which of the following choices is not considered a revenue producing business enterprise?
exis [7]
<span>b. public schools is the answer i did the test.</span>
3 0
3 years ago
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose
Feliz [49]

Answer:

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

Explanation:

Given a competitive market the consumer surplus will be the area of the demand curve above the market price

This is, between the intersection point with Y axis and a parallel at market price. Ofter represent as a triangle

If a monopolistic company maximize profit It will decrease this consumer surplus as much as it can to gain it from itself.

First it will set price equal to his marginal revenue.

Then, if possible it will charge two tariff a fixed component and a variable component per usage This will extrac all consumer surplus in favor of the firm leaving a consumer surplus of zero.

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

3 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t
Umnica [9.8K]

Answer:

Revenues=$188,000

Less: Variable Costs=$57,000

Less: Rentals=$37,000

Earnings before depreciation and tax=$94,000

Less: Depreciation =$17,000

Earnings before tax=$77,000

Less: Tax40%=$30,800

Net Income=$46,200

a) Dollars in minus dollars out

Dollars in = Revenues = $188,000

Dollars out = Variable cost + Rentals + Tax = $57,000 + $37,000 + $30,800 = $124,800

Operating cash flow = $188,000 - $124,800 = $63,200

b) Adjusted accounting profits

Operating cash flow = Net income + Depreciation = $46,200 + $17,000 = $63,200

c) Add back depreciation tax shield

Operating cash flow = Earnings before depreciation and tax x (1 - tax rate) + Depreciation tax shield

or, Operating cash flow = $94,000 x (1 - 0.40) + $17,000 x 40% = $63,200

Yes, all the results are same.

7 0
3 years ago
Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, a
slava [35]

Answer:

Personal liability

Explanation:

Jeri and Knute are shareholders in lighthouse tours LLC. As lighthouse tours LLC is a limited liability company, Jeri and Knute enjoy limited liability.

Legally, lighthouses LLC is independent of its shareholders. It has the right to own assets and incur liabilities. Should the company get to the dissolution stage, its assets will be used to settle its obligations. If the assets of the company are not sufficient, the shareholders' private properties cannot be used to pay the debts.  Jeri and Knute will be liable only to the extent of capital contribution.  

8 0
3 years ago
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